Estonia Company Formation

Introduction to Registering a company in Estonia

Estonia Company Formation benefit foreign investors from registering a company in Estonia with equal rights and obligations as local entrepreneurs.Estonia is the first place to offer e-Residency so that anyone can base their business and finances in the country. As an e-resident, you can get full access to Estonia’s advanced digital infrastructure and the same rights in business as Estonian citizens.

What is the most common type of company in Estonia?

There are two main kinds of business entity in Estonia:

Public limited liability company – Aktsiaselts (AS)
Private limited liability company – Osaühing (OÜ)

What are the requirements to establish a Public Limited Liability AS?

The minimum share capital for an AS is €25000.
if Member of the Management Board is not resident of Estonia or EU, official representative is needed. This representative must be resident of Estonia, it can be legal or natural person
audited accounts are required
a local serviced office is advisable, click here for details.

What are the requirements to establish a Private Limited Liability- OÜ?

The minimum share capital for an OÜ is €2,500.
if Member of the Management Board is not resident of Estonia or EU, official representative is needed. This representative must be resident of Estonia, it can be legal or natural person
a local serviced office is advisable, click here for details
an auditor’s report must be appended to the annual report of an organisation subject to accounting requirements who meets at least two of the following three conditions:

What other types of company are there?

General partnership (TU) – no minimum capital requirement or financial reporting requirements, all partners separately liable
Limited partnership (UU) – similar to TU but makes distinction between general and limited partners, no minimum capital requirement
Sole Proprietorship (FIE) – no capital requirements or financial reporting obligations

Estonia has a well-educated and skilled labor force and wage costs are very low by EU standards.Estonia operates one of the most liberal foreign trade regimes in the world, with virtually no tariff or non-tariff barriers. This approach has been carried through into the wider regulatory arena. Capital and earnings can be freely repatriated. Estonia has no exchange controls or restrictions on foreign investment. The amount of foreign capital that can be invested in an Estonian business enterprise is unlimited and companies can be in full foreign ownership. However, tax regulations must be strictly adhered to and there are severe penalties for infringement.

How can I get more information?

We provide a full range of corporate service in Estonia including company formation, bank account, registered office address accountancy services..EuroCompanyFormations.com will be pleased to discuss matters in greater detail.